The Effects of Budgeting Control on the Financial Performance of Manufacturing Companies (a Case Study of Oil Mills Limited)

ABSTRACT Budgetary control will always remain a great factor in the determination of the financial performance of manufacturing companies. This study seeks to analyse the effects of budgetary control on the financial performance of manufacturing firms. In this study, the descriptive survey design was used with the main instrument for data collection being the questionnaires. With a sample size of 50 managerial staff and workers of manufacturing company within the Oil Mills Limited which was taken through convenience sampling. Using regression analysis, the study revealed that planning, monitoring, participative budgeting and motivation have a positive relationship with the profitability of manufacturing companies with all variables significant levels less than 0.05 alpha level. The researcher therefore recommended that Oil Mills Limited after planning for their budgets should not just allow it idle, but should rather ensure that the activities are monitored on regular intervals to correct all deviations, and also include the participation of all departments in drafting the budgets to ensure reliability in the estimates. The researcher also recommended that the employees should be motivated in order to expose hidden talent embedded in them that can aid attain the budgeting objectives. Key words: Budgetary control, Profitability, Planning, Monitoring, Participative Budgeting, Motivation.